Insurance Technology Vendor Market Shares in Europe and North America

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1 A Datamonitor report Insurance Technology Vendor Market Shares in Europe and North America Vendor Positioning and Strategic Outlook in Insurance Technology Published: Oct-04 Product Code: Providing you with: Insight into current and planned investments from interviews with over 200 IT decision makers in Europe and North America Use this report to... Understand the market's view of your own and your competitors' positioning to better exploit market opportunities Competitive vendor positioning for overall insurance technology market Top ten vendor market share data for overall insurance technology market, services market and application software market

2 Insurance Technology Vendor Market Shares in Europe and North America Introduction This report provides key understanding of vendor dynamics in the insurance technology market and presents the market share of the top ten vendors in the overall market, the aggregate services segment and the application software segment. To provide a greater understanding of what this means for each vendor, the report also covers spending strategies, drivers and specific investment focus areas. Key findings and highlights The insurance technology market has ground to a virtual standstill in terms of growth over the last years. Since the low, the sector has picked up pace however and by 2006 Datamonitor expects the sector be the fastest growing technology opportunity in the financial services market. Short-term growth will be driven by further compound ratio-based projects and regulatory compliance in the P&C sector such as claims, infrastructure transformation and outsourcing of key functions and processes. The chief longer-term opportunity however is on the L&P side driven by policy administration transformation and to some extent outsourcing of the same process. The L&P sector also look to vendors for infrastructure transformation support. Reasons to buy Understand the market's view of your own and your competitors' positioning to better exploit market opportunities Identify your company's relative market shares in key insurance technology segments to position for growth areas Contact us...

3 Sample pages from the report Competitive Dynamics Overall insurance technology market share Figure 10: Overall market shares in total external insurance technology, Competitive Dynamics Vendor dynamics Figure 9: Global insurance technology vendor positioning Specialists insurance technology Total external technology spend providers, $27bnCustomer Focus End-to-end insurance technology providers Note: Vendor market shares are based on revenues from vendors financial years. The time period of some vendor financial years may vary. Market share and revenue analysis is based on analysis of company reports and financial data, interviews conducted with senior executives of the companies concerned and Datamonitor estimates. All figures provided which are not publicly available are Datamonitor estimates and should not be attributed to the company. Source: Datamonitor - Insurance focus + Spending strategies DA TA MO NI TO R Figure 6: How is your IT budget changing? The market share figures presented in this section are based on vendor revenues Europe derived from systems hardware, packaged software licenses, systems integration, professional services and outsourcing services. Generalist Increased vendors with 28% Insurance 32% The total external insurance technology market coverage remains outside dominated by key hardware technology insurance sector leaders vendors such as IBM, HP and Fujitsu. The majority of the $9bn insurance hardware Increased market is spread over only a handful of vendors as reflected by the - Insurance fact that three coverage of breadth + 52% Note: The relative size of the bubbles represents the revenues each vendor had the top four vendors are major hardware providers to the industry. The significance of from insurance technology in. the hardware segment also lessens the line of business specificity of the vendors with Source: Datamonitor Flat DA TA MO NI TO R all of the key hardware vendors attaining similar positions in other financial services 40% segments. The vendor positioning in Figure 6 is derived through breadth of services offering and 18% sector focus. The former is based on the geographic Increasedreach and coverage of the 32% Vendor market shares in European and US insurance vendor s technology insurance offering across software, professional services, systems Datamonitor (Published October 2004) integration and outsourcing services. The Page latter 32 is calculated by balancing absolute Increased This report is a licensed product and is not to be photocopied insurance revenues and relative insurance focus. 57% The lower left quartile is dominated by vendors whose primary market is not insurance technology, but focus on other lines of business Flatservices or 50% geographies with their financial services offerings. IT budget change from to 2004 IT budget change from 2004 to 2005 Source: Datamonitor North America 14% Flat 34% 12% Flat 31% DA TA MO NI TO R The continued cautious approach by European insurers reflects the slow improvement of overall trading conditions with especially life-side premium growth Vendor market shares in European and US insurance technology having been slow to materialize. That said, the proportion of insurers looking to cut Datamonitor (Published October 2004) Page 30 costs between 2004 and 2005 (18%) is substantially smaller than between the This report is a licensed product and is not to be photocopied previous years (32%) indicating at least a market stabilization. On the North American side top-level spending growth is far more bullish with over half of insurers increasing IT budgets as compared to approximately a third in Europe. Vendor market shares in European and US insurance technology Datamonitor (Published October 2004) Page 23 This report is a licensed product and is not to be photocopied Request more sample pages...for FREE!

4 Insurance Technology Vendor Market Shares in Europe and North America Table of contents EXECUTIVE SUMMARY Market context Customer focus Competitive dynamics - Overall insurance technology market share - Insurance technology services market share - Insurance application software market share INTRODUCTION MARKET CONTEXT Key findings Line of business segments Insurance technology markets Geographic variations CUSTOMER FOCUS Key findings Spending strategies Spending drivers Opportunities - Infrastructure - Policy administration - Outsourcing - Source COMPETITIVE DYNAMICS Key findings Vendor dynamics Competitive structure - Overall insurance technology market share - Insurance technology services market share - Insurance application software market share LIST OF TABLES Table 1: Global external insurance IT spend, Table 2: Global external insurance technology spend by region in Table 3: What will be the TWO primary drivers of your IT strategy in 2004? Table 4: Insurance technology spend by source type, LIST OF FIGURES Figure 1: Overall market shares in total external insurance technology, Figure 2: Insurance software and services market shares, Figure 3: Insurance application software market shares, Figure 4: Global external insurance IT spend, Figure 5: Global external insurance technology spend by region in Figure 6: How is your IT budget changing? Figure 7: What will be the TWO primary drivers of your IT strategy in 2004? Figure 8: Insurance technology spend by source type, Figure 9: Global insurance technology vendor positioning Figure 10: Overall market shares in total external insurance technology, Figure 11: Insurance software and services market shares, Figure 12: Insurance application software market shares, GOING FORWARD APPENDIX Contact us...

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6 Interested in this topic? Regulatory and economic pressures are forcing insurance companies to control technology costs while still meeting increased business demands. This is driving investment in business process outsourcing, claim processing and policy administration while putting emphasis on centralisation and consolidation. Datamonitor s Insurance Technology research analyses both the business and technology trends in the life & pensions and general insurance sectors, presenting the resulting opportunities and best practice for vendors. Other reports available in this series Distribution Technology Trends in European Insurance An examination of investment priorities in European insurance distribution channels, drawing on the findings of Datamonitor's latest European Insurance Technology Survey Published: Jul-04 Product code: BFTC1041 Bancassurance Technology Strategies Assessment of the key strategic and technology issues in the European and US bancassurance markets Published: Jan-04 Product code: BFTC0938 Eastern European Insurance Technology Strategies Investigates the key trends in the Eastern European insurance technology market Published: Sep-03 Product code: BFTC0876 Claims Automation in Europe: Opportunities in P&C Insurance A look at the fast-growing opportunities in European P&C claims processing Published: Apr-03 Product code: DMTC0889 For more information on reports and briefs go to: Subscribe to Monitor A monthly update of Datamonitor's new products, delivered to you by . monitor@datamonitor.com

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